Boris Johnson briefs cabinet on National Insurance cuts
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The calls come from Trades Union Congress (TUC) general secretary Frances O’Grady who said many Britons are facing a financial emergency. The comments followed news the consumer prices index (CPI) rose by 10.1 percent in the 12 months to July, up from 9.4 percent in June.
Rising food prices, increasing petrol prices and soaring energy bills have been placing Britons under huge pressure with benefits and wages not increasing enough to help people manage.
Now the TUC is calling on the government to do more to help struggling households before the cost of living gets even worse.
Ms O’Grady said: “Families are facing a cost-of-living emergency.
“Ministers must cancel the catastrophic rise to energy bills this autumn.”
He continued: “And to reduce future inflationary pressures and make energy more affordable, they should bring energy retail into public ownership.
“To help people with the cost of living this winter, government should bring forward increases to Universal Credit and the national minimum wage.
“And companies that were supported by taxpayers through the pandemic must step up to help too.
“They should show profit restraint to help keep prices down and to prioritise pay rises for staff.”
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In July, around 30 million people should have noticed an increase in take home pay thanks to changes made to the National Insurance threshold.
Changes to the National Insurance threshold mean that workers can earn £12,570 instead of £9,880 before they pay National Insurance Contributions (NIC).
It also means two million more people will be exempt from paying National Insurance together.
However, the bad news is that not everyone will end up paying less.
National Insurance winners and losers
An employee with a £20,000 annual salary will save £178 on their National Insurance between April 2022 and April 2023.
An employee who earns £30,000 per year will pay £53 less than they did the last year.
Somebody on a £50,000 yearly wage will pay an extra £197.
Britons who receive £100,000 annual pay will see their National Insurance increase by £822.
The biggest saving will be for people who are classed as lower- to middle-income earners when compared to the NI rates paid in the 2021-22 tax year.
According to the Government, the average worker will save around £330 per year.
The changes will improve the finances of around 70 percent of people who will end up paying less NI than last year.
HM Treasury has an online tool where people can work out exactly how much more or less NI they will have to pay which can be found at Gov.uk.
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